Discussion
What should we do with this property:
We don't live in it, currently rented
Mortgage remaining is £92k
Repayment mortgage at 2.5% fixed until Jun-17
Monthly mortgage is £374
It rents for around £600 a month
If it's empty we pay around £150 council tax and £30 factor fee a month
Property is valued at £145k
It's in Aberdeen, market is still pretty ropey to say the least
We have no savings to play with and don't earn a lot. When we first started renting it the market was pretty good and it let for £900 a month but it's been a slog for the past year now
We don't live in it, currently rented
Mortgage remaining is £92k
Repayment mortgage at 2.5% fixed until Jun-17
Monthly mortgage is £374
It rents for around £600 a month
If it's empty we pay around £150 council tax and £30 factor fee a month
Property is valued at £145k
It's in Aberdeen, market is still pretty ropey to say the least
We have no savings to play with and don't earn a lot. When we first started renting it the market was pretty good and it let for £900 a month but it's been a slog for the past year now
Thank you for your thoughts. We're under no illusions about the state of the Aberdeen market, which is a big reason why it's so difficult to know what to do..
In terms of costs when rented it's quite minimal, just over £400 per month all in.
If we did sell, the money would be used primarily to extend / renovate our house.
In terms of costs when rented it's quite minimal, just over £400 per month all in.
If we did sell, the money would be used primarily to extend / renovate our house.
ITP said:
On a 'today' basis you could say sell, invest 53k and if you got 3% for the next 25 years it would be worth 110k putting no extra in.
Or, if tenants cover all your mortgage/repair costs over 25 years you should be quids in, as it's worth 145k now, so it would have to be worth 30k less in 25 years.
I think this is the kind of long term thinking which i need to consider but I don't understand it! Long day sorry Or, if tenants cover all your mortgage/repair costs over 25 years you should be quids in, as it's worth 145k now, so it would have to be worth 30k less in 25 years.
By way of an update-
We did try to continue renting but the market was just too difficult for us. Our tenant wasn't great in paying which didn't help, and the ongoing maintenance which was needed at the same time as having a young baby was a major headache.
We put it on the market for just under value, had about 1 viewing a week and sold it to first time buyers after around 8 weeks. It was definitely the right decision for us at the moment and we couldn't be happier. Judging by some of the developments rumoured at my work the market might be slower in picking up than originally thought so I consider us pretty lucky
We did try to continue renting but the market was just too difficult for us. Our tenant wasn't great in paying which didn't help, and the ongoing maintenance which was needed at the same time as having a young baby was a major headache.
We put it on the market for just under value, had about 1 viewing a week and sold it to first time buyers after around 8 weeks. It was definitely the right decision for us at the moment and we couldn't be happier. Judging by some of the developments rumoured at my work the market might be slower in picking up than originally thought so I consider us pretty lucky
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